At 03:06 PM 2/22/2005, you wrote:
>Subject: Social Security Reform Is Dead
>From: Marlon Moyer <[EMAIL PROTECTED]>
>Date: Tue, 22 Feb 2005 14:03:20 -0600
>Thread: 
>http://www.houseoffusion.com/cf_lists/index.cfm/method=messages&threadid=16166&forumid=5#148060
>
>On Tue, 22 Feb 2005 11:17:45 -0600, Gruss Gott <[EMAIL PROTECTED]> wrote:
> > The Proposed Solution: Democrats
> > --------------------------------------------------
> > Put a 3% - 4% tax on earning over $90,000, the current amount where SS
> > taxes stop.  That is, today to cover SS, you pay about 12.4% income
> > tax up to $90,000/yr, but everything above that is exempt from the
> > 12.4%.
> >
> > This is very bad idea because it would kill the already terrible US
> > savings rate and cut take home pay.  Further it would do nothing to
> > solve the root of the problem, it would only treat symptoms.
> >
>
>How would this kill the savings rate?  I'm not sure I follow the logic.

  My translation:

  Americans are not saving money.  If there is less take-home income, it 
seems likely to me that less money will be saved, especially by people who 
struggle to make ends meet.

  You may counter that by stating that, anyone who is making $90,000+ per 
year should not be struggling to make ends meet.  You might be right, but I 
believe that the ability to make ends meet refers to the amount you spend, 
not the amount you make.

  I once read an MSN article that stated a high percentage (>50%? I don't 
remember the number?) of Americans spend more than they earn in any given 
year.  As income rises, so does the amount they spend, and they never get 
out of debt.  It boggles my mind how anyone could live that way, but my 
father was a (penny pinching) accountant.


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